Podcast
Questions and Answers
Why is aligning projects with business strategy important for organizations?
Why is aligning projects with business strategy important for organizations?
- It eliminates the need for strategic planning processes.
- It allows organizations to undertake all potential projects identified.
- It ensures that projects contribute to the organization's overall goals. (correct)
- It guarantees project success regardless of resource constraints.
Strategic planning primarily focuses on short-term objectives rather than long-term goals.
Strategic planning primarily focuses on short-term objectives rather than long-term goals.
False (B)
What does SWOT analysis stand for?
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, and Threats
In a traditional project planning process, selecting projects should start at the ______ to support the organization's business strategy.
In a traditional project planning process, selecting projects should start at the ______ to support the organization's business strategy.
Match the following elements with their respective descriptions in the context of strategic planning:
Match the following elements with their respective descriptions in the context of strategic planning:
Which of the following is a key characteristic of an agile approach to project planning?
Which of the following is a key characteristic of an agile approach to project planning?
A product roadmap is primarily used to display project schedule information with start and finish dates.
A product roadmap is primarily used to display project schedule information with start and finish dates.
What is the main difference between product management and program management?
What is the main difference between product management and program management?
The competitive strategy that attracts customers primarily due to inexpensive products or services is known as ______ leadership.
The competitive strategy that attracts customers primarily due to inexpensive products or services is known as ______ leadership.
Match each project selection method with its description:
Match each project selection method with its description:
What does Net Present Value (NPV) represent in financial projections?
What does Net Present Value (NPV) represent in financial projections?
Projects with lower NPVs are generally preferred over projects with higher NPVs, all other factors being equal.
Projects with lower NPVs are generally preferred over projects with higher NPVs, all other factors being equal.
What is a quarterly business review (QBR) and in which project planning approach is it commonly used?
What is a quarterly business review (QBR) and in which project planning approach is it commonly used?
While a product roadmap defines the why behind a project, a Gantt chart establishes the ______ and ______.*
While a product roadmap defines the why behind a project, a Gantt chart establishes the ______ and ______.*
Match each element of a SWOT analysis with its definition:
Match each element of a SWOT analysis with its definition:
An organization selects an enterprise resource planning ERP package and hires an outside firm to assist with implementation with little analysis. What went wrong?
An organization selects an enterprise resource planning ERP package and hires an outside firm to assist with implementation with little analysis. What went wrong?
A strategic plan typically covers an organization's mission, vision, and goals for the next 10-15 years.
A strategic plan typically covers an organization's mission, vision, and goals for the next 10-15 years.
Name three ways to perform financial projections.
Name three ways to perform financial projections.
In Net Present Value (NPV) analysis, the goal is to have the return from a project exceed the ______ cost of capital.
In Net Present Value (NPV) analysis, the goal is to have the return from a project exceed the ______ cost of capital.
Match the following terms with the descriptions
Match the following terms with the descriptions
Which of the following is a potential weakness in a SWOT analysis for a children's hospital?
Which of the following is a potential weakness in a SWOT analysis for a children's hospital?
In NPV calculations, costs must always be positive numbers.
In NPV calculations, costs must always be positive numbers.
Besides financial projections, name three other methods for selecting projects.
Besides financial projections, name three other methods for selecting projects.
Product ______ is the practice of strategically driving the development, market launch, and continual support and improvement of a company's products.
Product ______ is the practice of strategically driving the development, market launch, and continual support and improvement of a company's products.
Match the following components of a business strategy with their description
Match the following components of a business strategy with their description
How does an agile approach contrast to the traditional 'top-down' approach to project planning?
How does an agile approach contrast to the traditional 'top-down' approach to project planning?
An agile organization typically holds annual strategy meetings.
An agile organization typically holds annual strategy meetings.
In your own words, why is it important to align projects with business strategy using the strategic planning process, and SWOT analysis?
In your own words, why is it important to align projects with business strategy using the strategic planning process, and SWOT analysis?
Most organizations cannot undertake most of the potential projects because of resource ______.
Most organizations cannot undertake most of the potential projects because of resource ______.
Flashcards
Strategic planning
Strategic planning
Determining long-term objectives by analyzing strengths, weaknesses, opportunities, and threats.
SWOT analysis
SWOT analysis
Analyzing Strengths, Weaknesses, Opportunities, and Threats to identify potential projects.
Agile Approach
Agile Approach
A flexible project planning approach, allowing teams to provide feedback and influence changes.
Product roadmap
Product roadmap
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Product management
Product management
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Program management
Program management
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Net Present Value (NPV) analysis
Net Present Value (NPV) analysis
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Opportunity cost of capital
Opportunity cost of capital
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Cost leadership
Cost leadership
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Study Notes
- Project, Program, and Portfolio Selection overview
Aligning Projects with Business Strategy
- Organizations are limited by resource constraints when undertaking potential projects
- A business strategy should guide project selection and management
Strategic Planning
- Strategic planning involves defining long-term goals by evaluating an organization's strengths and weaknesses
- Strategic planning analyzes business environment opportunities and threats, predicts trends, and projects needs for new offerings
- Strategic planning gives information that helps identify and then select potential projects
- Strategic plans usually include the organization's mission, vision, and 3-5 year goals
Nemours Children's Hospital Example
- Mission: Provide leadership and improve children's health, setting high standards regardless of recipients' financial status
- Vision: To achieve freedom from disabling conditions
- Goals:
- Lead in improving children's health via integrated systems and become a pre-eminent voice
- Care for each child as if their own
- Be a good place to work
- Practice effective stewardship, improving assets to advance mission
SWOT Analysis
- SWOT analysis involves analyzing Strengths, Weaknesses, Opportunities, and Threats
- Helpful for identifying potential projects
Project Planning
- Traditional approaches are completed in four stages
- Agile approaches support making more timely decisions
- A traditional approach involves a detailed planning process that is often done annually
- In traditional project planning, selecting projects supporting an organization's business strategy is important
Agile Project Planning
- An agile approach is more flexible than a traditional, top-down planning approach
- Agile approaches allow teams to give feedback that influences redirection
- Corporations define strategy, fund teams, and entrust them to determine the best business value approach
- Agile organizations often hold quarterly business review meetings, instead of annual strategy meetings
Product Roadmap
- A product roadmap is an important artifact for agile planning
- A product roadmap visually summarizes a single product or many products over time
Product Roadmap vs Gantt Chart
- A Gantt chart displays project schedule information as project activities, start, and finish dates in a calendar format
- Roadmaps define why behind a project while Gantt charts establish how and when
- Product roadmaps should focus on strategy, with Gantt charts created to implement it
Product Management vs Program Management
- Product management strategically drives the development, launch, support, and continuous improvement of products
- Product managers are responsible for products from conception onward
- Program management coordinates interdependencies among projects, products, and strategic initiatives
Methods for Selecting Projects
- Focus on competitive strategy and organizational needs
- Perform a net present value analysis
- Use a weighted scoring model
- Implement a balanced scorecard
- Address problems, opportunities, and directives
- Consider project time frame and priority
Competitive Strategies
- Cost leadership attracts customers with inexpensive products/services (e.g., Walmart, Cub Foods)
- Focus develops products/services for a market niche (e.g., Babies “R” Us and Ron Jon Surf Shop)
Performing Financial Projections
- Financials are often important aspect of the project selection process
- Methods to use: Net present value (NPV) analysis, return on investment, and payback analysis
Net Present Value Analysis
- NPV analysis calculates a project's expected net monetary gain/loss by discounting future cash flows to the present
- NPV means the return exceeds the opportunity cost of capital
- Projects with higher NPVs are preferred, if factors are equal
NPV Considerations
- Investment years for project costs can be referred to as Year 0, without discounting costs in Year 0
- Discount rates can vary
- Enter costs as negative numbers or list them before benefits
- Project managers should check their organizations' preferred NPV calculation approaches
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